Euro bounced as ECB delayed further stimulus

European Central Bank remained at the current rate level as widely expected. However, in the statement, ECB cut the growth prospects of the next three years to 0.8%, 1.0% and 1.5%, lower than last expectation. The inflation expectation was also cut because of oil price drop and economic weakness.

Draghi said in the press that ECB will re-evaluate the current stimulus policy and implied that ECB may not take further step before February. Euro rocketed to 1.2450 after Draghi’s speech, that led other majors to rebound against Dollar.

Yen depreciated against Dollar to 120 level for the first time since July 2007, but did not stay beyond that level for long. The market participants are hesitating because of this critical resistance as the re-election is close. The next target for Dollar Yen is 125, however, we may need to wait for a more confirmed breakout for re-entry of Yen.

Sterling stayed at low after BOE decided not to change the current monetary policy. Euro Pound also rebounded yesterday after declining for three days. The triangle consolidation pattern was effective for now and the pair may rise to 0.8040 again.

The Asian stock markets closed higher following the overnight US stocks. The Shanghai Composite rocketed 4.31% to 2899. ASX 200 also rebounded 0.88% to 5369. The Nikkei Stock Average was up 0.94%. European stock markets mostly fell as ECB failed to take new steps to ease monetary policy, the UK FTSE lost 0.55%, the German DAX was down 1.21% and the French CAC Index lost 1.55%. US market edged lower. The S&P 500 declined 0.13% to 2072. The Dow closed 0.07% lower to 17900, and the Nasdaq Composite Index lost 0.11% to 4769.

On the data front, German Factory Orders will be released at 18:00 AEDST. At midnight, a series of North America data will be release, such as Canada and US Unemployment Rate and Trade Balance, and Non-Farm Employment Change as well.

Have a great trading day!

Anthony

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Vantage FX Pty Ltd, does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. The research contained in this report should not be construed as a solicitation to trade. All opinions, news, research, analyses, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently any person acting on it does so entirely at their own risk. The experts writers express their personal opinions and will not assume any responsibility whatsoever for the actions of the reader. We always aim for maximum accuracy and timeliness and Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on the service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.

Follow Us

Funding Methods

Risk Warning: Vantage FX Pty Ltd ACN 140 903 886 is not the issuer of the products or platforms described on this site. Rather,it is an Authorised Representative no: 343547 of Vantage Global Prime Pty Ltd ACN 157 768 566 AFSL 428901.Vantage Global Prime Pty Ltd is the issuer of the products and provider of the platform described on this site, and its PDSs are located here. Trading derivatives and forex carries a high level of risk to your capital and should only be traded with money you can afford to lose. Ensure you read the documents on our Legal Page (including FSG, PDSs and Terms & Conditions), and seek independent advice, to fully understand the risks,before deciding to trade. The information in this website is of a general nature only and the advice has been prepared without taking account of your objectives, financial situation or needs. Accordingly, before acting on the advice, you should consider the appropriateness of the advice having regard to your objectives, financial situation and needs, and after considering the PDSs.The information on this site and all matters relating to it are governed by and are to be construed according to the laws applicable in the State of New South Wales and the Commonwealth of Australia (Australian law). The website is for people located in Australia only and may not satisfy the laws of any other country.It should not be relied on by people in any country other than Australia. The information in this site is current at the date of publication but may be subject to change.

Forex Promotions

Open a live account today to gain exclusive access to our 8 Forex Promotions.